UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TheVlad Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75336  
Subject: Re: Roth's Date: 8/29/2001 8:30 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<<I have a Roth IRA that is invested in an S&P 500 Index Fund. My wife wants to roll her Roth over into a fund as well. She is interested in a Total Market Index Fund. Since we obviously have no divorce plans and share all assets, is it wise to have both of our IRA's in Index Funds even if they follow different indices?>>>

The problem here is that Total Market Index Fund (I assume you are talking about Vanguard Group) follows Wilshire 5000 which is 70% dominated by S&P 500. So, if you invest in both funds, you essentially increase your investment in S&P 500 rather than diversify your market exposure.

Vanguard has funds that follow Russell 2000 (small-cap) and other indices unrelated to S&P 500. You may want to consider an index which doesn't have that much in common with the one you are already invested in.

Vlad
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement